In addition to wood and fibre, Stora Enso sources other raw materials, products, and services from over 20 000 suppliers and contractors globally. We have strict sustainability requirements for all our suppliers.
Stora Enso’s Key Performance Indicator (KPI) for responsible sourcing measures the proportion of total supplier spend (including materials, goods, and services) covered by Stora Enso’s Supplier Code of Conduct. This coverage was 95% at the end of Q1/2018. The target for 2018 is to maintain the high coverage level of 95%.
In 2017, 49% of Stora Enso's total variable costs consisted of purchases of materials, goods, and services, while fibre procurement accounted for 51%. Materials and products sourced by Stora Enso include wood and fibre-based materials such as pulp and paper for recycling (PfR), chemicals, fillers, energy, fuels, and spare parts, as well as maintenance, logistics, and IT services. To ensure the responsible sourcing of these materials, potential suppliers go through a pre-qualification process before being considered for a contract. We also offer training to our purchasers.
In addition to enforcing our SCoC, we actively help our suppliers improve their sustainability performance. In 2017, we introduced Safety Trail, an online e-learning to educate our suppliers in proactive safety management, and initiated topic-based “deep dives” or thorough reviews of specific supply chains.
Based on a pre-evaluation of a supplier’s social and environmental risk profile, they may be selected for a third-party sustainability audit, conducted together with the purchaser. Any suspected SCoC non-conformances brought to our attention are investigated and followed up. Similarly, any non-conformances identified during audits are followed up with supplier meetings where the findings are discussed and corrective action plans devised. Relationships are terminated when suppliers are not willing to improve their performance.
The Stora Enso Supplier Code of Conduct (SCoC) is a binding legal document that imposes minimum sustainability requirements on suppliers. Other supporting policies include:
We consistently respond to our stakeholder demands concerning transparency and supply chain sustainability – even in markets where responsible sourcing is a relatively new concept. We believe that our sustainability demands not only encourage suppliers to improve their businesses, but also help to promote more sustainable sourcing around the world.
Our commitment to respect human rights covers all our operations, including our employees, contractors, suppliers, and surrounding communities.